Colombia’s borrowing costs increased in a local fixed-rate debt auction as concern defaults among U.S. home lenders will curb growth in the world’s biggest economy, limiting appetite for riskier emerging-market assets.

The yield on the benchmark fixed-rate bond due July 2020 rose to 9.8 percent from 9.64 percent at the last auction on Feb. 28. Demand for the fixed-rate securities due 2008, 2009, 2010, 2015 and 2020 sold today totaled 1 trillion pesos ($453.9 million), more than three times the 300 billion pesos offered.

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Posted: 03|15|07 at 8:04 am. Filed under: Auction News.